Who pays the 2% non-resident SDLT surcharge?

Buyers who have not been UK-resident for at least 183 days in the 12 months before completion pay an additional 2% on every band, on top of standard rates and the 5% second-home surcharge if applicable. The surcharge applies to individuals, companies, and trusts. A non-resident company purchase therefore pays 7% extra (5% + 2%) above standard rates.

Can I claim back the non-resident SDLT surcharge?

Yes. If you become UK-resident (183 days in any continuous 365-day period that begins within 12 months of completion), you can apply to HMRC for a refund of the 2% non-resident surcharge. The refund must be claimed within 2 years of completion, or 12 months of becoming resident, whichever is later. Submit form SDLT16 with proof of residency.

Do limited companies pay extra SDLT in the UK?

Yes. Limited-company purchases pay the 5% second-home surcharge on purchases of £40,000 or more, even on a first acquisition. Companies above £500,000 acquiring a residential dwelling that is not let to an unconnected tenant may also fall under the 17% flat-rate ATED-related SDLT, with reliefs available for genuine BTL businesses. Most SPV BTL purchases qualify for the 5% surcharge route, not 17%.

What changed with Multiple Dwellings Relief (MDR) in 2024?

MDR was abolished from 1 June 2024. Previously it allowed buyers acquiring 2 or more dwellings in a single transaction to calculate SDLT on the average price per dwelling, often reducing the bill significantly. Post-abolition, only purchases of 6 or more dwellings or mixed-use property continue to qualify for non-residential SDLT rates, which can be more favorable than residential plus surcharge.

When is stamp duty paid on a UK property purchase?

SDLT is due within 14 days of completion (the date you legally take ownership), not exchange. Your solicitor files the SDLT return and pays HMRC on your behalf, typically requesting the SDLT amount alongside the completion balance 5-7 days before completion. Late filing triggers automatic penalties of £100 plus interest.

What is the first-time buyer SDLT relief in 2026?

First-time buyers pay no SDLT on the first £300,000 of a property valued up to £500,000, and 5% on the £300,001-£500,000 band. Above £500,000 the relief is lost entirely and standard rates apply from £0. These thresholds reverted on 1 April 2025. The buyer must be a genuine first-time owner anywhere in the world: any prior worldwide property ownership, including inherited shares, disqualifies the relief.

Do I pay SDLT on UK properties under £40,000?

No. Properties priced below £40,000 are exempt from SDLT entirely, including the 5% surcharge. This exemption is widely used for sub-£40k freehold ground rents, lock-up garages, and very low-value commercial-converted residential. It does not apply to the first £40,000 of a higher-value property.

Stamp Duty Calculator

Model UK SDLT before you exchange.

Second-home surcharge, first-time buyer relief, non-resident 2% surcharge, calculated to the band. 2025-26 rates for England and Northern Ireland.

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Purchase details

Property price£300,000

Buyer statusSecond home / BTLApplies 5% surcharge on each bandFirst-time buyerRelief up to £300k, partial £300–500kNon-UK residentAdds 2% non-resident surcharge

Total stamp duty payable

£20,000

£0 – £125,000 at 5%£6,250

£125,000 – £250,000 at 7%£8,750

£250,000 – £925,000 at 10%£5,000

Effective rate6.67%

England & Northern Ireland SDLT only. Scotland (LBTT) and Wales (LTT) operate on separate rate bands. Multiple Dwellings Relief not applied. This is a guide, confirm with your solicitor before exchange.

What you need to know

Four SDLT rules every investor trips on

Second-home surcharge

5% added to each SDLT band for BTL, second homes and company purchases (on purchases of £40,000 or more). The single biggest line item on most investment purchases.

First-time buyer relief

No SDLT on first £300,000, 5% on £300-500k, no relief above £500,000. Must be genuinely your first property, worldwide.

Non-resident surcharge

2% additional on top of standard rates for buyers not UK-resident in the 12 months before purchase. Refundable if you become UK-resident within 12 months of completion.

Multiple Dwellings Relief

Abolished June 2024. Previously a major planning tool for portfolio purchases. Now only certain qualifying 6+ unit acquisitions qualify for non-residential rates.

Frequently asked

UK stamp duty FAQ

The 5% additional rate (raised from 3% on 31 October 2024) applies to every band of SDLT when you buy a second residential property, a buy-to-let, or a property through a limited company, on purchases of £40,000 or more. It applies on top of standard rates. For example, a £200,000 BTL pays 5% on the first £125,000 (£6,250) and 7% on the £125,000-£200,000 portion (£5,250), £11,500 in total. There is no exemption for a first BTL investment by an individual who already owns their home.

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